FX.co ★ Silver Extends Rally on Trade War Concerns

Silver prices surged to nearly $39 per ounce on Monday, marking their highest point in almost 14 years, driven by heightened demand for safe-haven metals amid renewed global trade tensions. This upswing occurred after U.S. President Donald Trump declared a 30% tariff on imports from the European Union and Mexico, set to take effect on August 1, further intensifying global protectionist concerns. In reaction, the European Union is reportedly engaging in deeper discussions with other impacted countries, such as Canada and Japan, exploring potential coordinated responses. Investors have adopted a cautious stance ahead of key U.S. inflation data expected this week, which could illuminate the broader economic repercussions of the new tariffs. On the monetary front, markets were unsettled by comments from economic adviser Kevin Hassett, who hinted that President Trump might dismiss Federal Reserve Chair Jerome Powell "if there's cause." Consequently, traders are now anticipating just over 50 basis points of Federal Reserve rate cuts by the end of the year.